Employee Rights and Protections

Duties and Responsibilities of Employers and Employees

Safety First

Occupational Safety and Health (OSH) in Malaysia

Occupational Safety and Health (OSH) refers to workplace safety regulations aimed at ensuring the health, safety, and welfare of employees and others affected by work activities. OSH not only protects workers but also co-workers, employers, customers, and the general public from potential hazards in the workplace.

The Occupational Safety and Health Act (OSHA) 1994

The Occupational Safety and Health Act 1994 (OSHA 1994) was enacted by the Malaysian Parliament and gazetted on 25 February 1994. The main objective of the Act is:

“To make further provision for securing the safety, health, and welfare of persons at work, for protecting others against risks to safety or health in connection with the activities of persons at work, to establish the National Council for Occupational Safety and Health, and for matters connected therewith.”

The Act applies to all industries except those under the Factories and Machinery Act 1967 and the Armed Forces. It places responsibilities on employers, employees, manufacturers, and self-employed persons to ensure a safe working environment.

Employer and Employee Responsibilities Under OSHA 1994

Employer Responsibilities:

🔹 Ensure the safety, health, and welfare of employees at work.
🔹 Provide safe work systems, tools, and personal protective equipment (PPE).
🔹 Conduct risk assessments to identify workplace hazards.
🔹 Offer proper training and supervision on safety procedures.
🔹 Establish an Emergency Response Plan (ERP) and fire safety measures.
🔹 Report accidents, occupational diseases, and dangerous occurrences to DOSH (Department of Occupational Safety and Health).

Employee Responsibilities:

🔹 Comply with safety policies and procedures.
🔹 Use provided PPE and safety equipment correctly.
🔹 Report unsafe conditions or workplace hazards.
🔹 Cooperate with employer safety measures.
🔹 Avoid endangering themselves or others.

Types of Workplace Hazards Covered Under OSHA 1994

Physical Hazards – Noise, extreme temperatures, radiation, vibration, exposure to loud machinery.
Biological Hazards – Mold, bacteria, viruses, pests, communicable diseases (e.g., COVID-19).
Chemical and Dust Hazards – Exposure to hazardous substances such as asbestos, fumes, gases, cleaning chemicals, and toxic dust.
Ergonomic Hazards – Poor posture, repetitive movements, improper lifting techniques leading to musculoskeletal disorders.
Psychosocial Hazards – Work-related stress, harassment, bullying, excessive workload, long working hours.
Safety Hazards – The most common type of workplace hazard, which includes:
✅ Slips, trips, and falls from spills, cluttered workspaces, and uneven surfaces.
✅ Working at heights (ladders, scaffolding, rooftops).
✅ Unguarded machinery and moving parts that may cause injuries.
✅ Electrical hazards such as frayed cords, exposed wiring, and improper grounding.
✅ Confined spaces with limited oxygen supply.
✅ Fire hazards, which can cause toxic gas inhalation, suffocation, and burns.
✅ Machinery-related risks (lockout and tag-out, forklift safety, boiler explosions).

Recent Amendments & Updates to OSHA 1994

✅ Expanded employer liability to include work-from-home scenarios and the need for comprehensive safety measures in modern workplaces.
✅ Heavier penalties for non-compliance, including fines of up to RM500,000 or imprisonment.
✅ Strengthening the role of Safety and Health Committees (SHC) in high-risk workplaces.

Conclusion

OSH compliance is crucial in preventing workplace injuries, illnesses, and fatalities. Employers must prioritize risk management and safety training, while employees must remain proactive in ensuring a hazard-free workplace. By adhering to OSHA 1994, both employers and workers contribute to a safer and healthier work environment in Malaysia.

Responsibilities of Employers and Employees Under Malaysian Law

Employer’s Responsibilities

Under the Occupational Safety and Health Act 1994 (OSHA 1994), employers have a legal duty to ensure the safety, health, and welfare of their employees while they are at work. Employers must:

Provide a Safe Work Environment – Ensure that the workplace is free from hazards that could cause injury, illness, or fatality.
Supply Personal Protective Equipment (PPE) – Employers must provide PPE such as safety helmets, gloves, eye protection, high-visibility clothing, safety footwear, safety harnesses, and respiratory protective equipment.
Conduct Risk Assessments – Identify workplace hazards and implement necessary safety measures to mitigate risks.
Provide Proper Training and Supervision – Conduct regular safety training and ensure employees are aware of the risks associated with their work.
Implement Emergency Preparedness Plans – Establish clear procedures for emergencies, such as fire, chemical spills, or accidents.
Ensure Compliance with Workplace Safety Regulations – Follow Factories and Machinery Act 1967, Employment Act 1955, and other related laws.
Report Workplace Accidents and Occupational Diseases – Employers must notify the Department of Occupational Safety and Health (DOSH) and the Social Security Organisation (SOCSO) of any serious workplace accidents, diseases, or dangerous occurrences.

Employee’s Responsibilities

Employees also have a duty to take reasonable care of their own safety and the safety of others in the workplace. Under OSHA 1994, employees must:

Follow Workplace Safety Rules and Procedures – Understand and comply with all health and safety regulations provided by the employer.
Use PPE Provided – Wear protective gear correctly and as instructed.
Report Workplace Hazards and Accidents – Notify management of any unsafe conditions, injuries, illnesses, or near misses.
Avoid Reckless Behavior – Do not engage in activities that could endanger oneself or others.
Participate in Safety Training – Attend mandatory safety briefings and awareness programs.
Cooperate with Employers and Authorities – Assist in investigations and safety audits conducted by the employer or regulatory bodies.
Maintain a Zero-Accident Mindset – Proactively take steps to prevent accidents and promote a safety-conscious workplace culture.

By fulfilling these responsibilities, both employers and employees contribute to a safe, healthy, and legally compliant work environment in Malaysia.

Labour Law Requirement

Employment Policies in Malaysia

Employment policies in Malaysia are governed by various laws enacted by the Parliament of Malaysia, which outline the rights, obligations, and protections for both employers and employees. Below are key legislations regulating employment in Malaysia:

1. Employment Act 1955 (Amendments 2022)

The Employment Act 1955 serves as the main labor law governing employment in Malaysia. It applies to all employees in the private sector, irrespective of wages, except for domestic workers. The Act:

Defines the employer-employee relationship, including contracts of employment (oral or written).
Covers provisions related to working hours, rest days, overtime, wages, termination, and leave entitlements.
Expanded scope (2022 Amendment): Now applies to all employees, not just those earning RM2,000 and below.
Mandates maternity leave (98 days) and introduces paternity leave (7 days for married male employees).
Ensures protection against forced labor and workplace discrimination.

Note: The Employment Act 1955 only applies in Peninsular Malaysia and Labuan. Sabah and Sarawak have their respective Labour Ordinances.

2. Children and Young Persons (Employment) Act 1966 (Amendment 2010)

This Act prevents child labor exploitation and sets minimum age limits for employment:

Child (Below 15 years old): Cannot be employed except in non-hazardous jobs such as family business, light work, or entertainment (with special permits).
Young Person (15-18 years old): Cannot engage in hazardous work, such as operating machinery or working underground.

The law ensures young workers’ education and welfare are not compromised.

3. Industrial Relations Act 1967 (Revised 2010)

This Act governs industrial relations, including employer-employee disputes, trade unions, and collective bargaining. It:

Promotes industrial harmony through negotiation and mediation.
Provides a mechanism for resolving employment disputes through conciliation, arbitration, or the Industrial Court.
Regulates procedures for strike actions and lockouts.

Recent amendments strengthen protections against unfair dismissal and wrongful termination.

4. Factories and Machinery Act 1967 (Revised 1974)

This Act ensures the safety, health, and welfare of factory workers. It covers:

Workplace safety standards for factories and industrial settings.
Safe operation of machinery and equipment to prevent workplace accidents.
Employer obligations to maintain a safe working environment.

It is enforced by the Department of Occupational Safety and Health (DOSH).

5. Employment (Restriction) Act 1968 (Revised 1988)

Regulates employment of foreign workers in Malaysia. Employers must:

Obtain work permits and employment passes for hiring non-Malaysian workers.
Adhere to Immigration Act 1966, which penalizes unauthorized employment of foreigners.

Failure to comply can result in legal penalties for both employer and employee.

This Act establishes SOCSO (PERKESO), which provides social security protection for workers in Malaysia:

Employers must contribute 1.75% and employees 0.5% of wages to SOCSO.
Covers employees for work-related injuries, disability, and dependents’ benefits in case of death.
Includes Employment Insurance Scheme (EIS) to support employees who are retrenched.

7. Employees Provident Fund Act 1991 (EPF)

Mandates retirement savings for employees in Malaysia:

Employees contribute 11% of monthly wages, while employers contribute 13% (for wages below RM5,000) or 12% (for wages above RM5,000).
Expatriates and foreign workers contribute RM5 monthly, while employers contribute a flat rate of RM5.
Funds can be withdrawn for retirement, housing, education, and medical purposes.

8. Occupational Safety and Health Act 1994 (OSHA 1994)

Ensures safe and healthy working environments for employees. Employers must:

Provide a hazard-free workplace and conduct risk assessments.
Supply Personal Protective Equipment (PPE) and enforce safety protocols.
Establish an Occupational Safety and Health Committee for workplaces with more than 40 employees.
Report workplace accidents, diseases, and dangerous occurrences to DOSH.

Non-compliance can result in legal action and fines.

9. Minimum Retirement Age Act 2012

Sets the mandatory retirement age at 60 years for employees in Malaysia. However, employers can:

Offer continued employment beyond 60 years (optional for employees).
Implement contract-based reemployment for retirees.

Exceptions apply to government employees, apprentices, and those in specific industries.

10. Human Resources Development Act 2001 (HRDF)

This Act establishes the Human Resources Development Fund (HRDF) to promote employee training and upskilling.

Employers must contribute 1% of employees’ wages to HRDF.
Encourages skills development programs to enhance workforce productivity.
HRDF funds training, reskilling, and certification programs for employees.

Applies to employers in manufacturing, service, and mining sectors.

11. Minimum Wages Order 2022

Sets the national minimum wage for employees in Malaysia:

RM1,500 per month for all employees.
Applies to both local and foreign workers.
Employers must comply with wage payment requirements regardless of industry.

Non-compliance can lead to legal penalties and fines.

Make an appointment with Company Secretary or Our Lawyer for advice and consultation

Principles to Hire the Best Talent in Malaysia

Hiring the right talent is critical for business success. In Malaysia, employers must align their recruitment strategies with local labor laws and industry best practices to attract and retain top professionals. Below are the key principles for hiring the best talent in Malaysia:

1. Clearly Define Job Roles and Requirements

A well-structured job description helps attract the right candidates. Employers should:
✔ Outline job responsibilities, key skills, and qualifications required.
✔ Ensure compliance with Malaysia’s Employment Act 1955 when setting employment terms.
✔ Specify expectations for career progression and work environment.

Having clear job descriptions reduces hiring mismatches and improves recruitment efficiency.

2. Ensure Legal Compliance and Fair Hiring Practices

Hiring must adhere to Malaysian labor laws to prevent disputes and penalties. Employers should:
✔ Follow non-discriminatory hiring policies (no bias based on gender, race, religion, or age).
✔ Offer employment contracts with legally required benefits (EPF, SOCSO, EIS) as per the Employment Act 1955.
✔ Abide by the Employment (Restriction) Act 1968 when hiring foreign workers.

A legally compliant hiring process ensures fairness and transparency.

3. Utilize Multiple Recruitment Channels

To attract top talent, employers must use diverse hiring platforms, such as:
✔ Online job portals (JobStreet, LinkedIn, MYFutureJobs).
✔ University career fairs and internship programs.
✔ Industry networking events and professional associations.
✔ Employee referrals and headhunting services for senior roles.

Expanding recruitment channels increases access to a wider talent pool.

4. Conduct Structured and Objective Interviews

A fair and effective interview process should:
✔ Include behavioral and situational questions to assess problem-solving skills.
✔ Use technical assessments for skill-based roles.
✔ Involve multiple interviewers to minimize bias.
✔ Maintain a standardized evaluation system for fair candidate assessment.

Structured interviews improve hiring accuracy and fairness.

5. Offer Competitive Compensation and Benefits

To attract and retain top talent, companies should provide:
✔ Salaries that match industry standards and the Minimum Wages Order.
✔ Mandatory benefits (EPF, SOCSO, EIS, medical leave) as required by Malaysian labor laws.
✔ Additional perks such as insurance, bonuses, and flexible work arrangements.

A strong compensation package enhances employee satisfaction and loyalty.

6. Focus on Cultural Fit and Long-Term Potential

Hiring decisions should not be based only on technical skills. Employers should also evaluate:
✔ Whether candidates align with the company’s values and culture.
✔ Soft skills like teamwork, adaptability, and leadership.
✔ Long-term career growth potential within the organization.

A good cultural fit leads to higher job satisfaction and employee retention.

7. Invest in Employee Training and Career Development

Top talents seek career advancement opportunities. Employers should:
✔ Offer training and upskilling programs (aligned with HRDF Act 2001).
✔ Provide clear career progression pathways.
✔ Encourage mentorship and leadership programs.

Investing in employees fosters long-term commitment and productivity.

8. Strengthen Employer Branding

Companies with a strong employer brand attract better candidates. Employers can:
✔ Showcase company culture and employee testimonials on job portals and social media.
✔ Provide a positive candidate experience during the hiring process.
✔ Offer work-life balance initiatives to enhance workplace appeal.

A strong employer brand helps differentiate the company from competitors.

Make an appointment with Company Secretary or Our Lawyer for advice and consultation

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